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Impact Insights (Issue 01)

Navigating B Lab Standards V2

Foundation Requirements and Purpose & Stakeholder Governance

Happy B Corp Month!

Responding to the evolving landscape of corporate accountability, B Lab’s V2 standards build responsible practices and decision-making directly into how companies operate. At IGP, we have spent the last year partnering with more than 14 "early adopters" of the B Lab V2 standards to conduct in-depth Gap Analyses utilizing our own tool. These companies—diverse in size, sector, and geography—helped us rigorously test our tools and the feasibility of the new requirements. While every recertifying B Corp we worked with identified gaps, the message was clear: The new standards are achievable.

The V.2 B Lab Standards shift from a points-based model toward mandatory baseline requirements combined with a commitment to continuous improvement in material impact areas. Most of our clients’ gaps involved formalizing existing, culturally embedded practices into documented policies. We discovered that fundamental changes to business models were not required. Moreover, the fact that every recertifying B Corp identified practices, policies, or data that was not fully ready for audit demonstrated that this is a shared, community-wide transition to improved social and environmental impact. Companies expected to close many of the gaps they identified during our engagement in the short term (i.e. less than 6 months).

This newsletter is the first in a series where we will share key insights from our work with clients adopting B Lab’s new standards.. In this issue, we will share key takeaways from Year 0 Requirements under the Foundation Requirements and Purpose & Stakeholder Governance impact topics. We will also tie these requirements to the Sustainability Management System (SMS)—now a core component of certification–to orient you, our community, to the role each requirement plays in companies’ individual SMSs. .

Themes We are Seeing

Across early adopters, several themes consistently emerge:

1. Formalization over reinvention – Most companies are not building new systems from scratch; they are formalizing and documenting what already exists.

2. Accountability clarity – Ownership must be named, not implied.

3. System integration reduces burden – Embedding into existing governance, HR, compliance, and risk systems prevents duplication.

Introducing the Sustainability Management System (SMS)

Central to the V2 standards is the Sustainability Management System (SMS). The SMS is the company-wide framework consisting of coordinating policies, processes, and organizational structure that embeds sustainability into normal operations through:

• Consistent application across all entities and sites within scope

• Performance tracking and evaluation with prescribed timeline

• Stakeholder engagement

• Highest Governing Body oversight

Think of the SMS as the "operating system" for your impact. It moves sustainability from a side project to a core business function. If your Company has policies, processes, job responsibilities, and/or reporting related to your social/environmental impact, you already have elements of a SMS in place. For more information, refer to this Knowledge base article: What Is a Sustainability Management System and Why it Matters?

How We Support This Transition

Our Gap Analyses uses IGP’s Impact Roadmap^©. This framework allows us to identify gaps in your SMS in addition to gaps against the V2 requirements by impact topic. This visibility will help your team build a durable Sustainability Management System aligned with B Lab’s expectations.

Understanding the "Highest Governing Body" (HGB)

V2 significantly elevates expectations for governance oversight.

The Highest Governing Body (HGB)—the individual or group with ultimate decision-making authority (e.g., Board of Directors)—must now review and approve multiple outputs across standards, including elements of purpose, stakeholder governance, and social/environmental performance.

This shift:

• Embeds accountability at the top

• Moves ESG from operational to strategic level

• Requires structured review cycles

Companies without formalized board ESG review processes will need to integrate these into governance calendars.

Phase I of Adopting B Lab’s New Standards: The Value of Gap Analysis

A strong gap analysis is more than a checklist—it’s a solid foundation. The process turns complexity into a clear roadmap, showing exactly where you stand and what it will take to move forward with confidence. It often reveals that many “gaps” aren’t about reinventing your business, but about formalizing and strengthening the good work already underway.

Just as importantly, the process deeply educates internal stakeholders—clarifying who owns which requirements, why they matter, and how they connect to each person’s role. That shared understanding builds lasting accountability, preparing teams not only for audit readiness, but for year-over-year improvement. Done well, a gap analysis builds momentum, sharpens accountability, strengthens cross-functional alignment, and transforms ambition into an actionable plan—so progress feels possible, measurable, and within reach.

How We Support This Transition

Our Gap Analyses uses IGP’s Impact Roadmap^©. This framework breaks requirements down to the most detailed level and tags them on ten dimensions (for example, ‘relates to the highest governing body’ or ‘this is a policy’ or ‘this is a Year 0, 3, and 5 requirement’), making it easier for your team to prioritize next steps, coordinate cross-departmental efforts, and build a durable Sustainability Management System aligned with B Lab’s expectations.

Year 0 Universal Requirements

We have created a practical summary of what we are seeing across our clients’ Year 0 Requirements under the Foundation Requirements and Purpose & Stakeholder Governance impact topics.

Join Us at Champions Retreat 2026!

We look forward to sharing lessons learned and practical implementation insights with the B Corp community at Champions Retreat 2026. Don't miss our sessions, both on April 22:

• Early Adopters on Bringing B Lab’s V2.1 Standards to Life: Real-world case studies from our Gap Analysis partners.

• Advancing Public Policy and Awareness for Certified B Corps: How to leverage your certification for systemic change.

March is B Corp Month

In March every year, B Lab and the global B Corp community join together to celebrate what it means to be a B Corp, build awareness of the movement and educate diverse audiences on the importance of transforming our economic system for the better. Learn how to get involved.

Ready to see where you stand?

Whether you are preparing for recertification or exploring certification under the new standards, we invite you to schedule a free consultation to discuss your pathway using the Impact Roadmap framework.